The invention relates to a method and a system for processing transactional data and monitoring funds invested in money market mutual funds for use in the purchase of health insurance policies and the payment of medical expenses
An objective of the invention is to permit individuals, families and defined groups, such as employers on behalf of their employees, or affiliation groups on behalf of their members, to establish medical savings accounts in an efficient and economical fashion. A medical savings account for the purpose of this invention can be defined as (1) a trust created or organized in the United States for the exclusive benefit of the beneficiaries of the trust if the governing instrument meets the requirements set forth in certain statutory language (including any future amendments thereof) whereby a sum of money may be set aside for the payment of future medical expenses and participants are covered by a high deductible health plan; or (2) a plan under which a sum of money can be set aside and which in part is used to pay for a health insurance policy with a high deductible and the remainder to pay medical expenses (up to the deductible amount), if any, and to retain the balance, if any, for future use or savings or (3) a plan with other variables included in addition to or in combination with features included in (1) or (2). In some cases, a tax benefit may occur with regard to certain state income tax liabilities and legislation is pending relative to Federal income tax benefits which may be available under certain conditions. Legislation is also pending for certain Medicaid participants use of medical savings accounts similar to the plans described herein.